June’s Top Hotel and Resort Updates: Key Industry Insights and Developments
June was an eventful month for the hotel and resort industry, bringing several significant announcements and developments. Here’s a roundup of the most important news, offering a snapshot of the latest trends and changes in the sector.
U.S. Hotel Market Forecast Adjusted Amidst Slowing Demand The U.S. hotel industry is facing a downturn in demand, particularly among budget accommodations, according to a revised forecast by STR and Tourism Economics. Challenges such as slow wage growth, high living costs, and elevated interest rates are impacting travel, especially among lower and middle-income consumers. Although overall hotel demand in the U.S. dipped by just 0.5% in April, the demand for midscale properties fell by 2.7%, and economy hotels saw a 3.9% decrease. “We expect moderate travel growth to resume, supported by economic expansion and the rebound of group, business, and international travel,” noted Aran Ryan, director at Tourism Economics.
Iberostar Launches First Resort in Aruba Iberostar Hotels & Resorts announced the opening of JOIA Aruba by Iberostar, its first resort in Aruba, set to debut later this year. Located along the beautiful Eagle Beach, the family-friendly, all-inclusive resort will feature 240 suites, a spa, casino, an 18-hole golf course, and multiple dining venues. “This marks a significant expansion of Iberostar’s presence in the Americas, with a focus on sustainable tourism,” said CEO Phil Mc Aveety.
Four Seasons Debuts in Cabo San Lucas The Four Seasons Resort and Residences Cabo San Lucas at Cabo Del Sol opened its doors, offering a new luxury beachfront retreat. The resort features 96 rooms and 61 residential units, eight dining venues, three pools, a spa, and an array of other luxury amenities. “We are redefining luxury beachfront living,” said Edgar Niebla, the resort’s manager.
2024 Top Hotel Rewards Programs Ranked A recent WalletHub report ranked the best hotel rewards programs for 2024, with World of Hyatt leading the pack. The study highlighted that World of Hyatt offers the most value, providing $14.72 in rewards per $100 spent. Following closely were Wyndham Rewards, Sonesta Travel Pass, and other notable loyalty programs, offering substantial savings to members.
U.S. Hotels Struggle to Fill Jobs Despite adding 700 new jobs in May, the U.S. hotel industry is still short of the workforce needed to fully recover from the pandemic’s impacts, reports the American Hotel & Lodging Association (AHLA). The industry continues to face challenges in attracting workers, despite offering high wages and benefits. AHLA is advocating for legislative measures to address these workforce shortages.
No Hidden FEES Act Advances in Congress The U.S. House of Representatives passed the bipartisan No Hidden FEES Act, aimed at enhancing fee transparency in the lodging industry. The legislation seeks to standardize how mandatory fees are displayed to consumers across all booking platforms, promoting transparency and fairness.
These developments reflect the dynamic nature of the hotel and resort industry, highlighting both challenges and opportunities as businesses adapt to economic conditions and evolving consumer expectations.